The Incompetent Liz Truss

the fact we seem to be writing them a big cheque with nothing in return for it

take the 2008 banking model bail them out but stop them taking dividends and bonuses for the next 5 years and then sell the stake after that 5 years and make them invest in renewables

That makes sense

(08-09-2022 06:56 )HannahsPet Wrote:  the fact we seem to be writing them a big cheque with nothing in return for it

take the 2008 banking model bail them out but stop them taking dividends and bonuses for the next 5 years and then sell the stake after that 5 years and make them invest in renewables

The energy companies are not in trouble,it is the consumers who are,energy companies do not need a bail out they are making record profits.

^ Not strictly true. The energy retailers are in trouble as they can’t buy power at good rates. HOWEVER some of those retailers also have energy production arms eg Centrica owns British Gas but also has a production arm which sells what they produce at inflated prices due to the Russia situation. That side of their business (along with Shell, BP etc) is making huge profits for no extra effort.

A tax on their excess profits would not harm them & a dividend freeze would sharpen their focus as well.

(08-09-2022 10:14 )SecretAgent Wrote:  ^ Not strictly true. The energy retailers are in trouble as they can’t buy power at good rates. HOWEVER some of those retailers also have energy production arms eg Centrica owns British Gas but also has a production arm which sells what they produce at inflated prices due to the Russia situation. That side of their business (along with Shell, BP etc) is making huge profits for no extra effort.

A tax on their excess profits would not harm them & a dividend freeze would sharpen their focus as well.

The energy retailers,some are in trouble,that is because they are retailers they sell it on,they are brokers although not good ones at that.

(08-09-2022 09:42 )Freeloaderthatsme Wrote:  

(08-09-2022 06:56 )HannahsPet Wrote:  the fact we seem to be writing them a big cheque with nothing in return for it

take the 2008 banking model bail them out but stop them taking dividends and bonuses for the next 5 years and then sell the stake after that 5 years and make them invest in renewables

The energy companies are not in trouble,it is the consumers who are,energy companies do not need a bail out they are making record profits.

the retail energy companies are in trouble if everyone stopped paying or couldnt afford to pay then they would go bust the oil and gas producers are the ones making the profits

bit like 2008 the threat of everyone taking there money out at the same time is what caused northern rock to go under which led to bail outs of RBS and LLoyds and others was to stop the panic taking out of money

Obviously the rise in wholesale gas has led to the escalation in prices by the retailers, but it has come about as a result of the deregulation of the market for natural gas (before, countries like the UK had long-term contracts for gas with prices set for years at a time). "Deregulation" was promoted as the “liberalization” of the European Union’s natural gas market. What it now allows is for unregulated real-time free market trading to fix prices rather than long-term contracts. Since the 1980s Wall Street banks, led by Goldman Sachs, created a new market in “paper oil,” or futures and derivative trading of future oil barrels. It created a huge casino of speculative profits that was controlled by a handful of giant banks in New York and the City of London. Those same powerful financial interests have been working for years to create a similar globalized “paper gas” market in futures they could control.

Facile, empty and cliched – Liz Truss’s first week has been a disaster
by Simon Jenkins
Ref: https://www.theguardian.com/commentisfre...k-disaster

Lizz Truss needs to raise her profile, after two Australian commentators failed to recognise her & her husband going into Westminster Abbey yesterday.
"Who is this, hard to identify. They may be minor Royals. They look like they could be local dignitaries. But I think that we are now getting to the pointy end as they say of the........ I've just been told that it was Liz Truss the new British Prime Minister "

The same Liz Truss who negotiated the high profile trade deal with Australia as Trade secretary?
Who then spent a year as Foreign secretary, including a much publicised visit to Australia in a private flight costing £1/2 million?

No, the Australian commentators were amateurs.